The new checking accounts, called GoBank, offer customers MasterCard (MA) debit cards with no overdraft fees, minimum balance fees, or monthly fees with qualifying direct deposits. To start an account Walmart customers buy a $2.95 starter kit which includes a starter debit card customers can use until their personalized card arrives.
"Walmart customers want easier ways to manage their everyday finances and increasingly feel they just aren't getting value from traditional banking because of high fees," Daniel Eckert, senior vice president of services for Walmart U.S., said in a statement. "Adding the GoBank checking account to our shelves means our customers will have exclusive access to one of the most affordable, inclusive and easy-to-use checking accounts in the industry."
Shares of Walmart were gaining 1.5% to $76.75 following the announcement.
TheStreet Ratings team rates GREEN DOT CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate GREEN DOT CORP (GDOT) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow."